SHANGHAI, May 7 (SMM) – LME copper prices treaded water on Wednesday as investors booked profits and closed at USD 6,415/mt, down USD 14/mt.
The ADP’s US job data hit a 15-month low in April, pushing the US dollar index below 96, while crude oil prices increased 0.9%. US shares fell across the board as Fed chair Janet Yellen warned of potentially overstretched equity valuations.
SHFE 1507 copper contract prices started higher at RMB 46,170/mt Wednesday night and tested RMB 45,650/mt with investors taking profits. But the July-delivery copper rallied quickly at the tail of the session and regained most of earlier losses to end down RMB 110/mt at RMB 45,980/mt. Trading volumes were about 174,926 lots and positions declined 12,894. Base metals failed to extend the strong momentum during night session May 6 due mainly to profit-taking and concerns over real demand in Chinese market. China’s trade data and the US nonfarm payrolls will be eyed tomorrow.
SHFE 1507 copper contract is expected to trade at RMB 45,500-46,300/mt on May 7. Spot copper may be offered between a discount of RMB 50/mt and a premium of RMB 50/mt to SHFE 1505 copper contract in Shanghai.